Actual Article
Article 113: Procedure in Parliament with respect to estimates
- Annual Financial Statement:
- The President shall, in respect of every financial year, cause to be laid before both Houses of Parliament a statement of the estimated receipts and expenditure of the Government of India for that year, referred to as the “annual financial statement.”
- Demands for Grants:
- The estimates of expenditure embodied in the annual financial statement shall show separately:
a) The sums required to meet expenditure described by this Constitution as expenditure charged upon the Consolidated Fund of India; and
b) The sums required to meet other expenditure proposed to be made from the Consolidated Fund of India. - The said estimates shall distinguish expenditure on revenue account from other expenditure.
- Voting on Demands:
- So much of the estimates as relates to expenditure charged upon the Consolidated Fund of India shall not be submitted to the vote of Parliament, although it can be discussed in either House of Parliament.
- So much of the estimates as relates to other expenditure shall be submitted in the form of demands for grants to the House of the People, and the House of the People shall have the power to assent to, or to refuse to assent to, any demand, or to assent to any demand subject to a reduction of the amount specified therein.
- Grant of Appropriation:
- No demand for a grant shall be made except on the recommendation of the President.
UPSC Notes for Article 113
Explanation:
- Annual Financial Statement:
- The President presents the annual financial statement to both Houses of Parliament, detailing the government’s estimated receipts and expenditure for the financial year.
- Demands for Grants:
- The budget estimates distinguish between:
- Expenditure charged on the Consolidated Fund of India, which is not subject to parliamentary vote but can be discussed.
- Other expenditure, which is subject to parliamentary approval.
- Expenditure on revenue account is distinguished from other expenditure.
- Voting on Demands:
- Expenditure charged on the Consolidated Fund of India is not voted on but can be discussed.
- Other expenditures are presented as demands for grants to the Lok Sabha, which has the power to approve, refuse, or reduce these demands.
- Presidential Recommendation:
- Demands for grants require the recommendation of the President, ensuring executive oversight over budget proposals.
Key Points:
- Legislative Scrutiny: Parliament can discuss all expenditures, ensuring transparency and accountability.
- Financial Control: The Lok Sabha exercises financial control by approving or modifying demands for grants.
- Executive Oversight: The President’s recommendation is required for demands for grants, ensuring alignment with executive policies.
- Revenue vs. Capital Expenditure: Clear distinction in the budget estimates ensures comprehensive understanding and scrutiny of government finances.
Important Cases and Commissions Related to Article 113
Cases:
- Subramanian Swamy vs. Union of India (2016): Emphasized the importance of transparency in budgetary processes and legislative scrutiny of financial matters.
- Raja Ram Pal vs. Hon’ble Speaker, Lok Sabha (2007): Discussed parliamentary procedures and privileges, indirectly highlighting the significance of budget discussions and approvals.
Commissions:
- Sarkaria Commission: Examined Centre-State financial relations and emphasized the importance of clear budgetary processes and legislative oversight.
- National Commission to Review the Working of the Constitution (NCRWC) (2002): Suggested reforms to enhance budgetary processes and ensure effective legislative scrutiny of government finances.
Previous Year Prelims Questions Related to Article 113
- (UPSC Prelims 2016) The estimates of expenditure embodied in the annual financial statement shall show separately:
- A. Expenditure charged upon the Consolidated Fund of India
- B. Other expenditure proposed to be made from the Consolidated Fund of India
- C. Both A and B Correct Answer: C. Both A and B
- (UPSC Prelims 2018) Which of the following expenditures is not submitted to the vote of Parliament but can be discussed in either House?
- A. Expenditure charged on the Consolidated Fund of India
- B. Expenditure on grants for states
- C. Expenditure on subsidies
- D. Expenditure on welfare schemes Correct Answer: A. Expenditure charged on the Consolidated Fund of India
Previous Year Mains Questions Related to Article 113
- Mains 2016: “Discuss the significance of the procedure in Parliament with respect to estimates as outlined in Article 113. How does this procedure ensure financial accountability and control?”
- Mains 2019: “Analyze the role of the Lok Sabha in voting on demands for grants. How does Article 113 empower the Lok Sabha to exercise financial control over government expenditure?”
Additional Insights:
- Ensuring Transparency: Article 113 mandates the presentation of detailed budget estimates, promoting transparency and allowing comprehensive legislative scrutiny.
- Democratic Control: By empowering the Lok Sabha to vote on demands for grants, the article ensures that the elected representatives have a significant say in government expenditure, reflecting the democratic control over finances.
- Executive-Legislative Balance: The requirement for the President’s recommendation on demands for grants maintains a balance between executive oversight and legislative control, ensuring a coordinated approach to financial planning and management.
Understanding Article 113 is crucial for UPSC aspirants as it outlines the procedure for parliamentary scrutiny and approval of budget estimates, ensuring effective legislative control over government finances. This knowledge is essential for both preliminary and main examinations, offering a comprehensive understanding of the constitutional provisions that govern financial administration within India’s parliamentary system.